TAO Alpha plans second secured convertible loan note with £100m minimum

Published 24/06/2025, 07:38
TAO Alpha plans second secured convertible loan note with £100m minimum

LONDON - TAO Alpha PLC announced Tuesday it is seeking to raise a minimum of £100 million through a second secured convertible loan note, with initial commitments of £20 million already secured from ParaFi Capital and other investors.

The new fundraising follows the company’s recently announced Bitcoin treasury strategy and comes after TAO Alpha successfully completed a £5 million initial raise on June 17.

According to the press release, the new notes will be secured by a first-ranking debenture, taking priority over the initial £5 million raise. The notes will automatically convert to ordinary shares at a fixed price of £0.01 per share upon shareholder approval and admission to the Main Market, with a conversion deadline of September 30, 2025.

The company has appointed U.S. broker Dawson James Securities to work alongside Fortified Securities to manage investor demand and navigate regulatory requirements, particularly for U.S.-based investors.

The fundraising will remain open for 20 trading days but may be adjusted based on demand. Investors from the initial raise will receive seed warrants to offset dilution, with 1% warrant coverage granted for every £1 million raised above £100 million.

Unlike typical loan notes, these will accrue no interest or fees unless in default, and will mature 90 days after the September deadline if automatic conversion has not occurred.

Final terms for the notes are still being finalized and will depend on various conditions including macroeconomic factors, the company stated in its release.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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